The sales journals of companies using the perpetual and periodic inventory systems differ in that under the perpetual system a column is used to record cost of goods sold and inventory amounts for each sale but not the periodic system.

Question

Quizplus · Accepted Answer

Under the perpetual system, cost of goods sold and inventory amounts are updated with each sale, whereas under the periodic system, these amounts are calculated at the end of the period and not recorded with each sale. Therefore, the sales journals for these two systems differ in this respect.

The Sales Journals of Companies Using the Perpetual and Periodic